10-KPeriod: FY2025

DEXCOM INC Annual Report, Year Ended Dec 31, 2025

Filed February 12, 2026For Securities:DXCM

Summary

DexCom, Inc. (DXCM) reported a strong fiscal year 2025, with revenue reaching $4.66 billion, a 16% increase year-over-year. This growth was primarily driven by increased sales volume of their continuous glucose monitoring (CGM) systems, particularly the Dexcom G7 and the recently launched G7 15 Day system. The company added approximately 600,000-700,000 net customers in 2025. Despite increased sales, gross profit margin saw a slight decrease due to supply availability inefficiencies and build configuration impacts. However, operating income grew significantly by 52%, reaching $911.8 million, supported by controlled operating expenses and a substantial increase in other income. Net income also saw robust growth, up 45% to $836.3 million. The company ended the year with a strong liquidity position, holding $2.00 billion in cash, cash equivalents, and marketable securities, demonstrating effective financial management amidst product innovation and market expansion. The company continues to focus on product development and market expansion, with the recent launch of the Stelo biosensor for prediabetes and Type 2 diabetes patients who do not use insulin marking a strategic move to broaden their market reach. Dexcom is also actively managing regulatory landscapes, addressing an FDA warning letter received in March 2025 regarding manufacturing process non-conformities, and has submitted responses. The company is well-positioned for continued growth, driven by its innovative product pipeline and expanding global presence, though it faces ongoing competitive pressures and evolving reimbursement policies.

Financial Statements
Beta
Revenue$4.66B
Cost of Revenue$1.86B
Gross Profit$2.80B
R&D Expenses$599.10M
SG&A Expenses$1.29B
Operating Expenses$1.89B
Operating Income$911.80M
Interest Expense$14.30M
Net Income$836.30M
EPS (Basic)$2.14
EPS (Diluted)$2.09
Shares Outstanding (Basic)390.20M
Shares Outstanding (Diluted)405.50M

Key Highlights

  • 1Revenue grew 16% to $4.66 billion in fiscal year 2025, driven by increased customer adoption and sales volume of CGM systems.
  • 2Operating income saw substantial growth of 52% to $911.8 million, indicating improved operational efficiency.
  • 3Net income increased by 45% to $836.3 million, reflecting strong profitability.
  • 4The company ended fiscal 2025 with $2.00 billion in cash, cash equivalents, and marketable securities, showcasing a healthy liquidity position.
  • 5Dexcom launched the Stelo biosensor in August 2024, expanding its market to adults with prediabetes and Type 2 diabetes who do not use insulin.
  • 6The Dexcom G7 15 Day system received FDA marketing authorization in April 2025, extending wear time and offering improved accuracy.
  • 7The company is actively addressing an FDA warning letter from March 2025 concerning manufacturing process non-conformities.

Frequently Asked Questions

In fiscal year 2025, Dexcom reported a revenue of $4.66 billion (up 16% YoY), a gross profit of $2.80 billion (up 15% YoY), operating income of $911.8 million (up 52% YoY), and net income of $836.3 million (up 45% YoY). The company also generated $1.44 billion in operating cash flow.

The primary drivers of revenue growth were increased sales volume of their continuous glucose monitoring (CGM) systems, particularly the Dexcom G7 and G7 15 Day, and adding approximately 600,000-700,000 net customers worldwide. The launch of the Stelo biosensor also contributed to market expansion.

In August 2024, Dexcom launched Stelo, its first over-the-counter glucose biosensor for adults with prediabetes and Type 2 diabetes not on insulin. In late 2025, the company launched the Dexcom G7 15 Day Continuous Glucose Monitoring System, and in April 2025, it received FDA marketing authorization for this longer-wear version.

Yes, Dexcom received an FDA warning letter in March 2025 regarding observed non-conformities in manufacturing processes and its quality management system. The company has submitted responses and is taking corrective actions, but acknowledges the potential for further regulatory action if requirements are not met to the FDA's satisfaction.